It is still done and comes in 2 fonts, the standard block writing which is made up of little dashes like - - - - or the more curly font. the curly font costs more not much more but more. You also choose your thread color. I had my graduation hat last summer and had my name stitched onto it at the gift shop by Philarmagic, i hadn't bought it there and had no problems having them do it without a receipt so you could order the hats online and then get them embroided in the parks to ensure you get the font you like
This response is full of misinformation.
Like iwish81792 said, they do still do the embroidery at several shops around the parks. They do not do the hand-embroidery anymore; it is all done by embroidery machine.
There are several fonts to choose from. If you choose Traditional (which is similar to the hand-embroidery from back in the day), that is $3 on top of the cost of the hat. If you choose the other fonts (Fun, Script, and I think there's another one), I believe it's $7 on top of the cost of the hat. There are also different colors to choose from: gold (not metallic), white, black, blue, and pink.
I just checked out the embroidery option on
disneystore.com, and it's an ugly block print, much like what I'm typing in right now. Ugh. How boring. If I'm getting classic Mickey ears for someone, I always get them the Traditional font in gold.
Also, if you decide you'd like to get them embroidered in the park, there's literally no reason to order them online ahead of time. Just buy them in the shop where you decide you'll get them embroidered.